5% of under-35s say verified reviews influence their big financial decisions – even more than advice from family and friends
85% of under-35s say positive online reviews from verified customers have more influence over their choice of primary banking provider than any other factor, research by global reviews and customer insights company Feefo has found.
Verified reviews were even more influential than verbal recommendations from friends and family (selected by 82% of respondents). The findings are revealed in research examining attitudes to the financial services sector among 1,002 UK consumers between the ages of 16 and 34.
“This is compelling evidence that verified reviews have a major influence on younger adults when they take big financial decisions,” said Matt West, CMO, Feefo. “Banks, lenders and insurers that fail to offer trustworthy, easy-to-use review systems are sacrificing a huge commercial advantage among young adults, who are looking for mortgages and loans as they start out in life.
“Most of these demanding young customers only want banking providers who make an effort to keep them engaged and loyal. Our research found that more than 60% of young adults foresee themselves switching providers more frequently in the future.”
The research revealed that even 82% of consumers who have never switched accounts said positive online reviews from verified customers influence their choice of financial service provider. Nearly nine-out-of-ten respondents (88%) who have switched three times also said verified reviews were highly persuasive.
While most young adults regarded themselves as loyal, a significant 88 per cent of people said banks and financial institutions can still do more to improve loyalty. More than three-quarters (77%) said their loyalty to a bank is boosted if they feel it is listening to them. But 40% said they have little engagement with their bank, except when something goes wrong, while a quarter (25%) have never provided any feedback.
“In the hyper-competitive era of fintechs and challenger banks, financial services organisations need to maximise every means of engaging with customers,” added West. “Out-of-the-box solutions can provide a bank’s customers with reviews they trust, using advances in artificial intelligence to provide personalised drill-downs and summaries. As well as enticing new customers and dramatically increasing loyalty, review systems tell a financial services provider what it is doing right and where it is going wrong. They are definitely revenue-builders.”
All respondents in the survey (100%) had a bank account, while 68% had a savings account, 51% a credit card and a quarter (25%) had a mortgage.